Now that the Securities and Exchange Commission has some first-hand experience with cybersecurity and getting hacked, it has launched a new initiatives to address cyber-based threats.
There is new Cyber Unit originating in the enforcement division. Robert A. Cohen will be Chief of the Cyber Unit, stepping away from being Co-Chief of the Market Abuse Unit. The cyber unit will focus on:
- Market manipulation schemes involving false information spread through electronic and social media
- Hacking to obtain material nonpublic information
- Violations involving distributed ledger technology and initial coin offerings
- Misconduct perpetrated using the dark web
- Intrusions into retail brokerage accounts
- Cyber-related threats to trading platforms and other critical market infrastructure
According to Francine McKenna, one hacking case may involve the SEC itself. According to Ms. McKenna, the enforcement lawyers had a case based on non-public information stolen from the SEC’s system. It was this case that forced them to tell SEC Chairman about the breach.
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